Ann: Completion of Placement & SPP Announced, page-39

Some figures are wrong here. 14.6m in cash and eq, i.e. gold inventories. Most of it bullion at the refinery. That was end of September. Troy paid AUD 5.6m to Investec. Another ca. 1.5m to trade creditors. Due to lower production December quarter will only have cash flow of 2.2m from ops. Means right now they should have 9.7m in cash and equivalents before the cr. Deduct 3.3m gold inventory in circuit and you have 6.4m left that is actually real cash and eq. Then deduct the upcoming AUD4.2m Investec payment in January and you have 2.2m left. The cr doubles that to 4.7m. There will be another payment of 7.3m australian to Investec end of March. So 2.6m in cashflow from ops needed in the March quarter. My calcs show 4 to 4.5m on a conservative basis. So Troy is barely making it. On the plus side not much risk at operations because all production is from stable Hicks pits and stockpiles. The big unknowns are trade debt and costs due to a higher strip ratio at Hicks comoared to Smarts. After March Troy will be debt free and even if low production levels continue they will have 4m fcf per quarter before trade debt repayments. Don't think Investec is a risk to Troy as the remaining debt of usd 5.2m is less than half of the true value of their options.